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Target's secret strategies for never letting you walk out with just one item

Store experience – layout and services.

Target's secret strategies for never letting you walk out with just one item

Seasonal offerings

Seasonal offerings

In every store, including its smaller locations, Target devotes a section to season-specific items such as Halloween and Easter. "

Target is a seasonal leader," Macridi said, adding that some customers go to the store just to shop this selection.

To encourage them to browse for more, the seasonal section is typically located at the back of the store so customers need to walk the entire space to get there, Macridi said.

Private label products

Private label products

Target is known for its private label brands and has doubled down on this area of the business.

In 2017, it launched eight new brands including women's apparel line A New Day, menswear collection Goodfellow & Co., home goods brand Project 62, athleisure brand Joy Lab, and Hearth & Hand with Magnolia, a home goods collaboration with Chip and Joanna Gaines from "Fixer Upper." CEO Brian Cornell said the store will launch another four over the course of 2018.

These products are a way to differentiate Target and boost profit margins while still being able to offer customers affordable prices. They are a big asset in driving traffic to stores and given that they are cheaper than other well-known brands, customers are likely to buy more.

The strategy seems to be working — in just over a year, sales at its kids' apparel brand, Cat & Jack, surpassed $2 billion. Overall, private label now makes up around one-third of its total sales, according to Morningstar.

Partnerships and unique products

Partnerships and unique products

One of Target's biggest differentiators to other big-box stores is its partnerships and collaborations.

According to The Washington Post, Target has rolled out 175 different partnerships since it launched this concept in 1999. Recently, this has included a clothing line with Victoria Beckham, a homeware collection designed by the Gaines' (the couple behind TV programme Fixer Upper), and this month's Hunter boots and outdoor wear collaboration.

These exclusive designs not only create a hype around the store but a reason to visit it.

"These types of lines actually drive little in sales, but the real win is to drive people to stores and have them buy everything else they need,” Sucharita Kodali, an analyst for the market research firm Forrester told The Washington Post. “It’s perfect for Target.”

Social media

Social media

While Target lags behind its competitors on the Facebook fan front, it is far outpacing them on Instagram, an app which customers are increasingly using for shopping online and as a place to find inspiration before heading to stores.

Target has 2.3 million followers on Instagram, Amazon has 1.3 million, Walmart 1 million, and Kroger 52,000.

"They are very good on social media about promoting," Ioli Macridi, a research analyst at PlanetRetail RNG told Business Insider, and this helps drive traffic to stores.

Target frequently reposts photos uploaded by shoppers and bloggers using its products on Instagram to humanize its social media campaigns. And, makes it easy to shop for anything featured in these photos by linking images on the page directly to their corresponding web link.

Social areas

Social areas

Analyst David Gordon told Business Insider that retailers are increasingly devoting more space to areas where people can come in, have a drink or a coffee, and interact.

Target offers a Starbucks cafe in many locations, and in the past has also partnered up with other suppliers such as salad chain Freshii to offer fresh salads and wraps.

Most recently, it opened a Chobani cafe in its New York Tribeca store. As this is one of only two Chobani stores in existence, this is a tactical way to drive new customers to the location and encourage them to shop the store before or after they visit the cafe.

Bullseye Playground

Bullseye Playground

Target makes one final push at the cashier to make that final sale with its Bullseye Playground section.

Referred to by Target as: "That grab-and-go mecca at the front of Target stores known for killer dollar deals," this isn't just a candy station.

These mini curated sections are located at the front of stores with a selection of products that are either on promotion, are locally related, or seasonally related. It's the last chance for shoppers to load up their carts.

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